Entering South Korean Market - the Challenges and Recommendations for Bellamy’s Organic

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                                            MKTG 6013

                  Entering South Korean Market:

           The Challenges and Recommendations for

                                 Bellamy’s Organic  

                                                   Project 5:                               

Youjia Guo         312045247

                                  Boyu Hao           450576540

                           Xinyi Li              450519411                                                                                        

Yang Wang        440098702                    

 Shiying He         440451125

1. Introduction

Bellamy’s organic products are fairly famous and popular in Australian market and intend to entry into South Korea market for growth of capital and market share in global perspective. However, the potential challenges are intractable which the intensive international competition is generated by free trade agreements between South Korea and US. Thus the lower tariff will increase the price competitiveness of American brands. Furthermore in terms of competitive landscape, Germany and New Zealand have been the two largest international competitors, domestic infant formula companies strongly dominate the South Korean market, and consumers show preference towards domestic formula brands.

This report is designed to offer viable solutions for these potential challenges of Bellamy’s organic expanding into South Korea. It covers from competitive landscape, organic brand image, pricing, entry mode, distribution structure, cultural preference, and country-of-origin to provide comprehensive discussion and solution. Then, it will provide recommendations of general implement strategies to Bellamy’s Organic.

1. Discussion

1. Competitive landscape

In terms of competitors, the key competitors include international formula brands from Germany, New Zealand, and US, as well as domestic dairy brands such as Namyang Dairy Products, Maeil Dairy Industry, and Ildong Foodis (LNV office 2015). Bellamy’s Organic could compete with them via two aspects, which is the brand recognition of organic and global positioning.

1. Brand Recognition

The brand image of Bellamy’s Organic should be well established and promoted in Korea so that they could differentiate its products with the concept of organic. There are evidence shows that the demand for authentic organic food in Korea has increased for 10 percent over the past 10 years, and the infant and children organic food market could be anticipated with a positive growth prospect (Australia Trade and Investment commission 2014). Thus, with Australian made and certified organic ingredients and products designed for all stages’ infants and children, Bellamy’s could meet the market demand in Korea (Bellamy’s 2014). Moreover, in order to better strengthen Bellamy’s brand recognition, the entry mode of joint venture could be used. By cooperating with domestic dairy firms, Bellamy’s could utilize their existing resources and reputation to increase our brand recognition and market share more effectively.